Family incomes eroded, poverty up in 2010-2012 says central bank

(By Stefania Fumo)
(ANSA) - Rome, January 27 - Between 2010 and 2012, low- and
middle-income families in recession-battered Italy have seen
their quality of life eroded along with their incomes while the
richest have gotten richer, according to a biannual study on
family finances released Monday by the Bank of Italy.

Poverty rose from 14% in 2010 to 16% in 2012 amid Italy's
worst postwar recession, with almost half of Italian families
living on less than 2,000 euros a month, the central bank report
said.

Also in 2012, the richest 10% owned 46.6% of the country's
total net worth, up from 45.7% in 2010 and equal to a 64%
concentration of wealth, according to the report.

Only 50% of households have annual incomes higher than
24,590 euros, while 20% of them cope with annual incomes of less
than 14,457 euros, or roughly 1,200 euros per month.

Just 10% of families make more than 55,211 euros per year,
the Bank of Italy said.

Individuals making up to 7,678 euros a year and families of
three with yearly income of up to 15,300 euros fall below the
poverty line, according to the Bank of Italy.

The number of poor families rose from 2.8% in 2010 to 4.1%
in 2012, while in the same two years, average family income
dropped by 7.3% and average wealth rose by 6.9%.

One in three people living below the poverty line is an
immigrant, the central bank added.

The Coldiretti farmers' association commented on the Bank
of Italy report by citing its own 2013 family survey data that
said last year, more than two in three Italians severely cut
their budgets due to falling family incomes, with 68% giving up
on new clothes, 53% eschewing travel and holidays, 49%
renouncing bars, clubs, and eating out, 35% cutting down on
cultural activities, and 29% giving up on sports and going to
the gym.
The outlook on 2014 remains negative, with 51% of
respondents saying they believe their situation is not likely to
change this year, 35% saying they think it will get worse, and
just 14% of families saying it will improve, Coldiretti said.

''Millions of Italians are being forced to live in
conditions of economic and social inequality, and this is a
cause for concern'', said small and medium-sized business
association Confesercenti President Massimo Vivoli.

''Today's (Bank of Italy) data confirms the situation of
economic and social stagnation caused by the recession and
excessive taxation to the detriment of economic and welfare
policies''.

Also on Monday, Prime Minister Enrico Letta said Italy is
pulling out of the recession, with GDP expected to grow by 1%
this year.